Holistic View of Intuition and Analysis in Leadership Decision-Making and Problem-Solving

Abstract

Making decisions is a key task for leaders and managers. Senior leaders are currently exposed to increasing amounts of data which they must process quickly in our current dynamic world. Complex factors in the business world are not always best approached through an analytical framework. Using tacit knowledge gained through intuition can enable a more holistic understanding of the deep nature of today’s problems. This paper takes an expansive view of decision-making with intuition right at the centre and canvasses understandings of intuition arising from philosophy, psychology, Western and Eastern beliefs; and proposes a model that relates intuition to other problem-solving approaches. The paper presents the results of interviews with senior leaders who must make difficult decisions in complex turbulent environments. The interview schedule is based on questions raised in a prior literature search concerning the relationship between intuition and analysis in complexity decision-making and problem-solving, the usefulness to this group of respondents, the possibilities of combining both approaches and any conflict arising from that combination, and understandings of the concept of intuition by these respondents. The resultant model presents a visual description of a process that moves from exterior assessment achieved via sensing and analysis, through to deeper understandings and a more holistic discernment gained through intuition. The model has the potential to assist leaders faced with difficult-to-solve problems in providing a better understanding of the steps involved in tackling problems of increasing levels of complexity.

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“…Intuitive intelligence is thinking creatively and adapting effectively to new situations. This type of intelligence is known as wisdom based on holistic thinking and experience based (Hallo & Nguyen, 2022). Intuitive intelligence requires insight and creative problem-solving; for example, marketing managers, management consultants, lawyers, doctors, sales managers, and senior travel agents are some jobs in the service sector requiring intuitive intelligence.…”

Bounded Rationality a Prelude to Ecological Rationality: A Deeper Look at the Fast and Frugal Heuristic in Leadership

“…Considering the empirical definitions of mental models by scholars (Jones et al, 2011;Paoletti et al, 2020;Pulmanunen et al, 2021, Serrat 2021, an individual's mental model provides the lens through which problems and their underlying patterns are applied to problems, which can sometimes involve gut feelings (Hallo & Nguyen, 2022). The fast and frugal model is sequential and uses recognition; recognizing one of the possible solutions takes precedent over others (Goldstein & Gigerenzer, 2002).…”

“…Although classical decision-making using statistical modeling differs theoretically and in utility from heuristics, they are equally as crucial in an organization (Basel & Brühl, 2013;Cristofaro, 2017;Hallo & Nguyen, 2022;Huikkola et al, 2022). Fast and frugal heuristics improve effort and accuracy during times of uncertainty (Hafenbrädl et al, 2016;Kurdoglu & Yasin, 2022) in turbulent environments when probability and modeling will not address the problem (Huikkola et al, 2022;Kurdoglu & Yasin, 2022).…”

“…Fast and frugal heuristics improve effort and accuracy during times of uncertainty (Hafenbrädl et al, 2016;Kurdoglu & Yasin, 2022) in turbulent environments when probability and modeling will not address the problem (Huikkola et al, 2022;Kurdoglu & Yasin, 2022). Additionally, they are appropriate when issues are illdefined and complex (Hallo & Nguyen, 2022), and when there are many possible solutions to the problem (Lejarraga & Pindard-Lejarraga, 2020). The unifying thesis around the saliency of fast and frugal heuristics is uncertainty, when decision-makers are unaware of outcomes.…”

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“…Schiuma; Schettini; Santarsiero (2021) indicam que a habilidade de usar a intuição para compreender a essência de algo ou de uma situação é essencial no contexto da digitalização. O uso do conhecimento tácito adquirido por meio da intuição possibilita uma compreensão mais holística da natureza profunda dos problemas atuais (HALLO; NGUYEN, 2022). A intuição tem pontos fortes importantes, aparecendo espontaneamente através de sentimentos singulares baseados na experiência ou na chegada repentina de uma solução sem aviso prévio, ou mesmo através da previsão intuitiva (IANNELLO, 2011).…”